The calculator provides heating and cooling cost estimates of heat pump system options vs. gas furnace and air-conditioning systems, based on state-average EIA residential gas and electricity prices, and modeled performance curves of heat pumps based on manufacturers’ data. The calculator also provides carbon emissions benefits of heat pumps, based on projected state-average electricity emission factors from the National Renewable Energy Laboratory (NREL), as well as accepted emission factors for natural gas.
For existing homes heated with propane or electric resistance heating, a heat pump system will save over 50% on heading costs for all climate zones and states.
User-Friendly, Accurate, and Impartial
Our efforts to make this calculator user-friendly, accurate, and impartial include the following considerations:
- Heating and cooling cost estimates independent of home size or quality. Our calculator presents heating and cooling cost differences as percentages rather than annual costs. This method ensures accuracy regardless of variations in home construction quality, greatly simplifying required inputs and reducing potential errors.
- System choices suitable for climate zones. We offer a variety of heat pump system options tailored to both new and existing homes within specific climate zones, encompassing a range of initial system costs. This enables homeowners to compare benefits and select the best option for their needs.
- Relative installation costs only. We offer qualitative guidance on relative installation costs of the heating and cooling system options, which tends to be consistent across regions, rather than attempting to provide actual dollar cost estimates.
- Stable energy price estimates. We utilize the state-average electricity and natural gas prices from the past four years, which evens out the annual price variations. This approach provides a more accurate comparison of heating costs for the next 4-5 years, based on a more stable ratio of the relative prices of natural gas and electricity.
- State or utility-specific energy prices. Electricity and gas prices vary significantly by state; the calculator uses the average residential energy prices from each state, while also allowing users to input their specific utility rates.
- No energy inflation assumptions. We do not attempt to predict future energy cost inflation, which has proven to be very unpredictable.
- Non-commercial tool. This calculator is not associated with the sale of any products; it is intended purely as a source of unbiased information.
(Note: For existing homes heated with propane or electric resistance heating, a heat pump system will save over 50% on heating costs for all climate zones and states. Our calculator does not provide more specific estimates of savings compared to these other fuels/heating types.)
Thinkheatpump.org was created by the Southwest Energy Efficiency Project (SWEEP), a non-profit organization dedicated to advancing energy efficiency and beneficial electrification in the utilities, buildings, transportation, and industrial sectors.